Utilizing the band of investment technique, an appraiser has a loan-to-value ratio of 75%, a 20-year fixed mortgage with a fixed annual rate of 6.75% requiring monthly payments. If the overall capitalization rate is 9.5%, what is the equity dividend rate if the mortgage interest rate was increased to 8.5%? a) 8.5% b) 10.64% c) 6.76% d) 3.57%
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- You have been assigned to estimate the interest rates that your company may have to pay when borrowing money in the near future. The following information is available.kPR = 2%MR = 0.1% for a 1 year loan increasing by 0.1% for each additional yearLR = 0.05% for a 1 year loan increasing by 0.05% for each additional yearDR = 0 for a 1 year loan, 0.2% for a 2-year loan, increasing 0.1% for each additional yearExpected Inflation Rates Year 1 = 7% Year 2 = 5% Year 3 and thereafter = 3% a. Calculate the inflation adjustment (INFL) for a 5-year loan. b. Calculate the appropriate interest rate for a 5-year loan.1. You have just obtained a commercial mortgage for $6.25M with a 5-year term, 25-year amortization period and 6.50% mortgage interest rate. (a) Construct an amortization table for the term of the loan assuming annual payments. What is the annual payment? What is the balance at maturity? (b) What is the e¤ective cost of borrowing if the borrower pays an origination fee of $30,000? (c) The borrower can repay the balance of the loan at any time prior to its maturity, but must pay a penalty of 5% of the outstanding balance. What is the cost of borrowing if the borrower pays an origination fee of $30,000 and pays off the remaining balance of the loan after making payments for 4 years?Calculate the equity dividend rate using the following information: First year NOI: $ 89,100 Price of the property: $1,056,000 Mortgage terms: Loan to value ratio=75%, 30 year term, 6.5% contract rate, up-front fees of 3% of loan amount (assume monthly payment and monthly compounding) (Round your answer to two decimal places. If you calculate equity dividend rate as 11.56%, report it as 11.56)
- Consider a traditional 30-year fixed rate mortgage, borrowing $400,000 (present value) at an annual interest rate of 3.25%, payable in monthly payments. Create an Excel spreadsheet and use basic math functions to develop a schedule for the entire life of the loan. Your table should include columns for Payment #, Principle Remaining, Interest Paid, Principal Paid, Cumulative Interest Paid, and Cumulative Principal Paid. Then use this table to answer the following questions: c. How much did the borrower pay in total to pay off this loan, if they paid just the minimum payment for the entire 30 years? And how much of that total is just interest? d. Create a graph of the interest and principal amounts paid each month, for just the first two years of the loan. (Hint: use an “X Y Scatter” chart type) e. Bonus question: How much sooner (in months) would the borrower pay off this loan, if they paid an extra $100 per month? Your Excel spreadsheet must show this calculationshow steps to calculation with screenshots of excel !! Consider a $ 5,000,000, 8.5% APR, 30-year mortgage with monthly payments. What is the yield to maturity (YTM) of this loan under the following circumstances: (a) No points, fully - amortizing (b) Three points, fully amortizing. Three points means that the present value is 3% lower than the loan amount in the YTM calculation. ( c) Three points, 7 - year maturity with balloon.You are considering three alternative investments:
- Consider a $150,000 loan with an annual interest rate of 6.5 percent and a 30-year term. Discount points are equal to 2 percent. All other up-front financing costs to be paid by the borrower total $3,000. Compute the monthly payment and the loan balance at the end of months 1–6. What is the effective borrowing cost (EBC), assuming that the loan remains outstanding to maturity?assume a $175,000 mortgage loan and 10-year term. The lender is charging an annual interest rate of 6 percent and 4 discount points at origination. a. What is the monthly payment Assuming that it is based on an amortization period of 30 years? b. What will be the required balloon payment at the end of the tenth year? c. What is the effective borrowing cost on the loan if it is held to maturity? Give typing answer with explanation and conclusionG. Find the interest rate (APR) on a 27-year mortgage with a initial loan amount of $358,000, if the monthly payment is $2229.45 Let's use references for input values; and be sure to annualize the rate! INPUTS: OUTPUT: Period Rate is APR Payment Loan amount
- Use an amortization table (Use Spreadsheet application such as Excel) that determines the monthly mortgage payment based on interest rate of 35% and a principal of GHS1000,000 with a 15-year maturity and then for a 30-year maturity. Is the monthly payment for the 15-year maturity twice the amount for the 30-year maturity or less than twice the amount? Explain.Assume that a lender offers a 30-year, $148,000 adjustable rate mortgage (ARM) with the following terms: Initial interest rate = 7.5 percent Index = one-year Treasuries Payments reset each year Margin = 2 percent Interest rate cap = 1 percent annually; 3 percent lifetime Discount points = 2 percent Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year (BOY) 2 = 7 percent; (BOY) 3 = 8.5 percent; (BOY) 4 = 9.5 percent; (BOY) 5 = 11 percent. Required: a. Compute the payments and loan balances for the ARM for the five-year period. b. Compute the yield for the ARM for the five-year period.Can you please help me with the following questions? 1. Determine the total amount of an investment of $1,400 at 3.5% simple interest for 48 months. 2. Determine the total interest on a loan of $5,000 if the interest rate is 6.24%, compounded monthly for 12 years. 3. Use a TVM solver to determine the interest rate on a loan of $5,400 if interest is compounded monthly for 72 months and the final amount of the loan is $6,965.35. List the values you used for present value, future value, number of years, and number of compounding periods per year. 4. Use a TVM solver to determine the monthly payment of a lease of $21,568 if the interest rate is 4.8% compounded monthly for 48 months. 5. Over a five-year period, the maintenance on a car included two oil changes per year ($48 each), new brakes ($452), new tires ($678), and a new set of spark plugs ($145). What is the average yearly maintenance fee on the car for the five-year period? 6. Compare the…
